Global streaming giant DAZN is getting into the North American sports betting market.
The company plans to launch its first DAZN BET sportsbook in Ontario by Q3, Legal Sports Report has learned.
More details on DAZN BET
The Ontario online sports betting product will be powered initially by Sportradar’s Optima sportsbook engine. Sportradar hinted at such a deal in its recent Q4 results call.
DAZN is also working on building its own player account management platform (PAM), in partnership with technology firm Pragmatic Group.
DAZN confirmed the Pragmatic deal in a press release on Wednesday.
Confirmation from DAZN
The company said it would establish a new business in Gibraltar under the DAZN BET brand.
DAZN BET will have access to the DAZN customer base and brand under a licensing agreement with the wider group.
Pragmatic Group will supply the underlying platform and content and be responsible for ongoing product development.
The two companies will build an “integrated experience for casual bettors to enjoy alongside DAZN’s live sports streaming,” a release said.
Future of sports betting?
Segev said the convergence of betting and sports media was “the future.
“This historic partnership brings together the leading sports media company and a technology partner who is committed to developing innovative experiences for fans. It underscores DAZN’s commitment to revitalise the sports viewing experience by offering a broader spectrum of digital entertainment for fans.”
DAZN’s sportsbook plans were no secret
The forthcoming launch is no surprise. As covered by LSR last September, DAZN has hired multiple sportsbook execs with a plan to build “a world-class betting proposition.”
DAZN is also led by CEO Shay Segev who is familiar with betting platforms from his time at Playtech and Entain, where he oversaw multiple technology integrations.
DAZN co-founder James Rushton also told the BBC last year that DAZN wanted to boost revenues by expanding to “things like wagering, betting, fantasy and commerce.
Why Ontario?
Ontario sports betting has just launched in earnest and Canada is one of DAZN’s largest markets. The company has streaming rights to the NFL in Canada, including NFL Redzone. It also has the Canadian rights to the UEFA Champions League and the Premier League.
DAZN is not listed as a license applicant in Ontario as of Tuesday.
The company will also launch a sportsbook in the UK before the end of the year, sources said.
Why is DAZN getting into sports betting?
The streaming site is a potentially big player, with 15 million subscribers worldwide per the BBC. However, it is currently loss-making, having spent billions on global sports rights.
Indeed, the pivot to sports betting is reminiscent of another streaming company: FuboTV.
Fubo blazing a trail for DAZN?
Fubo acquired a sportsbook platform last year and has launched the Fubo Sportsbook in Arizona and Iowa. However, it has yet to make a major impact with a 0.11% share of Iowa sports betting handle in March.
As one example of the potential streaming/betting integration, Fubo recently unveiled a ‘Live Sync’ function. Essentially the betting app is linked to a streaming account, meaning the app will display markets for whatever the user is watching.
Can the streaming/betting crossover work?
Some experts have questioned the practicalities of embedding a sportsbook within a streaming platform, especially with HD streams often 40 seconds behind live action.
The rights for betting-related streams are often sold separately to normal streams, potentially posing another obstacle.
DAZN and Sportradar had not responded to an LSR request for comment at the time of publication.
